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If there’s one constant in the resource sector, it’s the boom-bust-repeat cycle that over the past
40 years has been almost predictable. This is particularly the case with gold stocks. That being said, investors with just a smidgen of patience will see their gold portfolios driven by a hurricane-force bull market.
The edited excerpts above and below are from an article* by Jeff Clark (caseyresearch.com) originally entitled Will Warren Buffett Really Let This Deep Value Slip By?
We charted every major cycle for gold stocks (producers) from 1975—when gold again became legal to own in the US—to the present. You can easily see that not only do gold stocks cycle up and down repeatedly, but the percentage gains for buyers at a cycle bottom can be downright mouthwatering.
What’s interesting about where we sit today in early 2015 is that gold stocks have now logged the second-deepest bear market since 1975—rougher even than the selloff following the 1980 mania.
This history teaches three “how to get rich” lessons.
- For the recent bear market, the bottom for gold stocks is almost certainly in.
- The next major cycle in gold stocks will be up.
- The profits could be spectacular, because as the patterns show, triple-digit gains have been common.
Gold stocks have finished the bust that tormented investors for more than three years and are now preparing for another boom. All you have to do is hold on and wait for the next cycle to begin. No timing required…
Conclusion
Gold stocks will soon go vertical again—just as they have many times in the past—and investors with just a smidgen of patience will see their gold portfolios driven by a hurricane-force bull market. Virtually all gold stocks will go much higher. As in the past, gains for the strongest juniors will be 10-to-1, and you can expect a few superstars to return 100-to-1.
[The above article is presented by Lorimer Wilson, editor of www.munKNEE.com and has been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]
*Original Source: http://www.caseyresearch.com/articles/will-warren-buffett-really-let-this-deep-value-slip-by (© 2015 Casey Research, LLC; All rights reserved)
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I’d add that all it will take is one Geo-Political “event” and then all bets are off as far as the values of PM will be during the rest of 2015 or in 2016.
I think the odds are at lest 50-50 so the real question is not IF to own PM’s but HOW MUCH TO OWN.
Good Luck to US all.
Also posted here: https://www.munknee.com/noonan-when-will-gold-silver-rally-not-in-2015-heres-why/#comment-157386